Good day, ladies and gentlemen, and welcome to the Gibraltar Industries Second Quarter 2014 Earnings Conference Call. At this time, all participants are in a listen-only mode. We will be conducting a question-and-answer session towards the end of today’s conference. I will now turn the call over to your host for today, Mr. David Calusdian of the Investor Relations firm, Sharon Merrill. Please proceed.

Good morning, everyone, and thank you for joining us. If you have not received a copy of the earnings press release that was issued this morning, you can find it in the Investor Info section of the Gibraltar website, gibraltar1.com. During the prepared remarks today, management will be referring to presentation slides that summarize the company’s second quarter performance. These slides also are posted to the company’s website. Please turn to Slide #2 in the presentation. The company’s earnings release and slide presentation contain forward-looking statements about future financial results. The company’s actual results may differ materially from the anticipated events, performance or results expressed or implied by these forward-looking statements. Gibraltar advises you to read the risk factors detailed in its SEC filings, which can be also accessed through the company’s website. Additionally, Gibraltar’s earnings release and remarks this morning contain non-GAAP financial measures. Reconciliations of GAAP to adjusted measures have been appended to the earnings release. On our call this morning is Gibraltar’s Chairman and CEO, Brian Lipke; President and Chief Operating Officer, Frank Heard; and Chief Financial Officer, Ken Smith. At this point, I will turn the call over to Brian.

Thank you, David. Good morning, everyone, and thanks for joining us on our call this morning. I’m going to start with some introductory comments on the second quarter, then I’ll introduce our new President, Frank Heard, who will share some observations and his two months with Gibraltar, and then Ken Smith will review our financial results in detail. Following that I’ll close our prepared remarks with some thoughts on the outlook, and at that point, we’ll open the call to any questions that any of you may have. With that, I’ll ask you to turn to Slide 3 in our presentation, titled Overview. After a long cold winter that drove soft Q1 results, end-market demand in the Q2 did not rebound as strongly as expected. Our second quarter revenues and adjusted EPS were in line with the estimates we pre-announced on June 27, but were unfavorable compared to the prior year. Demand for roofing-related products remained unexpectedly weak throughout the quarter, and will be below demand anticipated by many industry observers. This contributed to slower-than-anticipated revenue growth in our Residential Products segment as improvement in customer orders experienced at the end of March and April did not increase during the remainder of the second quarter. As a result, net sales in our Residential Product segment were up only 6% from the second quarter of 2013, compared to our expectations over 20% growth. The residential growth we did experienced reflected strong demand for our postal storage products. The other parts of our business performed as expected. Sales growth for the second quarter in our Industrial and Infrastructure Products segment was 3%, in line with our guidance of 1% year-over-year. Sales in this segment reflected improving volume from industrial markets, while shipments to the transportation infrastructure market were lower as expected. Overall,…

Thank you, Brian. Good morning, everyone. I am very happy to be here at Gibraltar, and I am looking forward to meeting as many of you as possible in the months and quarters ahead. I started with the company in mid-May, and since then, I’ve had the chance to visit most of our businesses and production facilities, spending the bulk of my time meeting with many of our employees and various leadership teams. Based on what I’ve seen and experienced over the past 2.5 months, I can say with confidence that Gibraltar has assembled a solid team of talented and motivated people. It’s due to their hard work that Gibraltar has been able to resize and restructure its existing businesses in line with new patterns of market demand and further position itself for profitable growth. I am enthusiastically looking forward to working with such an experienced team during this pivotal time in the company’s history. This is my first opportunity to speak with many of you, so before I discuss the quarter, I would like to tell you briefly about where I come from and the experience that I bring to Gibraltar. I started my career as a Manufacturing Engineer at ITW Canada Inc, with a background in Mechanical Engineering working within the Automotive OEM Group. My professional focus since then has been with ITW’s Global Construction Group in a succession of increasingly responsible leadership roles, most recently leadings it Building Components Group. As its President, I’ve had global responsibility for the strategic, operational and financial results for 25 businesses in 18 country markets, including emerging markets. These businesses served a wide range of industry segments, including residential and commercial construction, retail and component manufacturing. During this time, I came to appreciate the importance of focusing on select end-markets, understanding…

Thanks, Frank, and good morning, everyone. Before describing the 2Q results compared to the prior year, I’ll describe more of our 2Q results compared to our prior guidance. On May 2, guidance for the second quarter was weighted on a significant rise and demand from residential markets, particularly repair and remodeling activity, coming off of very weak first quarter depressed by prolonged winter weather, covering a larger portion of the U.S., but in May and June, we did not get any snapback in order rates from residential repair and remodeling activity. And as a result, which Brian noted, sales in our Residential Products segment were up only 6% year-over-year compared to our expectations, for 20% growth over 2Q last year. And adjusted EPS for the second quarter also came in below May 2 guidance. Half of the shortcoming coming from the lower sales of the residential markets and the other half due to three profit improvement initiatives, which unexpectedly and temporarily incurred higher costs and longer times to complete. And I’ll describe these three initiatives in the coming slides. The other parts of our business performed as expected to guidance. And I’d now like to turn to Slide #4 titled Consolidated Results. Starting with the second quarter, revenues rose 5% despite the weakness in residential repair and remodeling demand, and the expected weakness in the transportation infrastructure market. Lower volumes in those two markets were more than offset by the combined volume increases that we experienced in the residential postal products and in energy-related industrial markets. The 5 percentage points rise in sales over 4 percentage points came from net higher volume, led by double-digit growth of cluster mail boxes for centralized mail deliveries, plus low sing-digit-growth in industrial markets. And I’ll provide more color when I discuss each segment’s…

Thank you, Ken. Before we open the call to your questions, let me offer a summary as outlined on Slide #10. We are taking a conservative view that the weakness in end-markets we serve will continue, and therefore as Ken cited, we no longer expect to recover the first half 2014 shortfall compared with the prior year period. We now project general demand in the second half of the year to comparable to demand levels experienced in the first half of this year. Based on our cost reduction initiatives and continuing strong demand for the postal and package products, adjusted earnings in the second half of 2014 should be up significantly from the first half, and be approximately equivalent to adjusted earnings for the second half of 2013. Although, the first and second quarters were weaker than anticipated, we believe the U.S. housing market will continue its long-term recovery. The latest industry such as the National Association of Homebuilders, Housing Market Index, Harvard’s Leading Indicator of Remodeling Activity, as well as the latest Census Bureau reports on housing sales and starts all signal improvement from the first half, albeit, not at the levels widely expected coming into the year. Residential repair and remodeling activity remains uncertain, and therefore we believe it’s prudent to expect reroofing demand will be modestly unfavorable for full-year 2014, but slightly improved in the second half over the first half of 2014. Most importantly, we are continuing to see accelerating rates for our postal and parcel delivery products. We believe this is due both to customer programs, as well as the underlying trends towards centralized mail delivery, driven in large part by cost savings initiatives within postal authorities. Our Florence manufacturing business is the recognized leader in this market. It has a long history of serving…

Thank you. We will now be conducting a question-and-answer session. (Operator Instructions) Our first question is coming from Ken Zener of KeyBanc Capital Markets. Please proceed with your question. Ken Zener – KeyBanc Capital Markets: Good morning gentlemen. Frank, welcome.

Thank you. Ken Zener – KeyBanc Capital Markets: I’m going to focus mostly on residential here, and I appreciate the greater commentary on volume and price. So in postal, it sounded like – Ken, I think you said postal was up 20%, yet you commented on 7% volume. If you could just affirm that, the rest would be price mix there. And then in roofing, I guess the volumes were kind of down 1% or 2%. Could you please talk about, how much your volumes compared to what you saw at point-of-sale that your customers said they drawdown inventory and you actually had better growth there? Thank you.

I hope I remember all the parts of your question, Ken. Let me start to answer them. If I’ve left any answers off, let me know. The predominant increase in postal products, growth of 20% was virtually all volume. The figure of 7%, I am looking through my notes. I’m not sure where that came, although we did have $0.07 per share, a difference between the quarters, but the postal products increase is all volume driven. And the other portion of your question dealt with POS sales, and those were unfavorable across – if I aggregated the major DIY partners that we sell to, those are unfavorable in our product categories. Ken Zener – KeyBanc Capital Markets: Okay, but not in the inventory drawdown. And then, your guidance. I appreciate how you broke out the 3Q preview on Slide 8. Given your guidance, it seems that in the fourth quarter, implied margins are actually moving to up year-over-year position versus the down year-over-year we’re seeing in your 3Q guidance. Is that an accurate interpretation of your guidance and…

Yes, it is Ken. Ken Zener – KeyBanc Capital Markets: Okay. And then what is your corporate expense line that you’re looking for, for the dollars just...

Well, for the full-year, I am expecting it’s going to be in the $15 million range. Ken Zener – KeyBanc Capital Markets: And do you have a breakout? Is it going to be kind of similar in each 3Q and 4Q? Is there more of a weighting?

No, it’s fairly equivalent. And that $15 million for the year equates to last year’s 2013 of little over $20 million. So we’ve been at normal reduction in that category this year. Ken Zener – KeyBanc Capital Markets: Thank you very much.

Thank you. (Operator Instructions) Our next question is coming from Seth Yeager of Jefferies. Please proceed with your question. Seth Yeager – Jefferies: Hi, good morning.

Good morning, Seth.

Good morning, Seth. Seth Yeager – Jefferies: On the roofing impact, just to clear it – and I apologize if you have this just mentioned. That was 1% to 2% that you saw down during the quarter, and how this demand looked subsequent to that? Maybe as a follow-up, on declining yourselves [ph] and then a number of guys have commented on a slowdown in reroofing activity, which is historically been pretty stable. Any thoughts on just what’s driving that trend year-to-date. Is it storm activity or just overall thoughts there maybe?

Yes. The reroofing industry has been fairly stable over the years, although in 2013, it was a lower year than 2012, which led to a lot of optimism coming into 2014 that it would be a stronger year than 2013. Unfortunately as you stated, other companies who are heavily involved in the roofing industry have come out and said that higher level of demand and expectation has not been materialized. I think part of it is due to storm-related issues and that storm activity has not been as intense. And also consumers are trying to wait as long as they possibly can before doing major repairs to home. If the roof isn’t leaking, basically they are putting off repairing it as long as they possibly can. I think those are the two big reasons that the demand expectation levels there have exceeded the actual demand. But at some point in time, roofs wear out, and it’s never going to go away. So I think to a large extent, it’s a matter of timing. Seth Yeager – Jefferies: Right. Now are you guys having issues with the channel being – with some of the optimism coming into the year really loading up on inventories of your products, is that as much of an issue as it is on the single-side for you guys?

Not so much this year. Last year, we did see first quarter ramp-up of inventory builds by many of our distributor customers, and even some of the retail customers, that did not happen this year. And as the bad weather continued through the first quarter into the second quarter, we have not seen a restocking or a raise in the level of inventories that our major customers are having. So we haven’t benefited from that this year. Seth Yeager – Jefferies: Okay. All right, thank you. And then just on raw materials. I don’t believe you – the guidance for 3Q is very helpful, but I don’t think you netted out margin compression from raw materials that you mentioned over the cost savings. Can you maybe just talk about trends in steel prices going into the second half?

Well for steel prices, we expect them to stay where they are today, what we’ve had in the second quarter, which for us is around $680 a ton. And whether some reasonably demand could pull that downwards, we’re not expecting that improvement in cost develop. So we’ve not forecasted the improvement or easing of raw material costs in our third quarter guidance. Seth Yeager – Jefferies: Okay. And then just last one for me. Your guidance implies about $25 million of free cash flow, which is by my calc is about $40 million second half swing. When we look at working capital, do you expect to end the year with as a meaningful source of use of cash for you guys? Thank you.

The fourth quarter will be a larger use or a less of source, whichever way you want to define it, than prior years because we are expecting higher revenues in the fourth quarter as we fulfill current orders in backlog for postal products. So we have a continued secular revenue growth for that product category. That’s going to raise our – particularly our receivables in the fourth quarter. So will it be a – overall working capital be a source in the fourth quarter? Just not to the degree it was, say in the last couple of years. Seth Yeager – Jefferies: Okay, great. Good luck. Thanks a lot guys.

Thank you, Seth.

Thank you. At this time, I would like to turn the floor back over to Mr. Lipke for any additional or closing comments.

Thank you all for joining us on our call today. We look forward to speaking with you about our third quarter 2014 earnings results on October 28. And we look forward to talking to you at that point in time. Thank you.